PSU to hold home loan rate hike

Public sector banks seem to be holding back the rate hike for the fear of loan defaults.

05 Aug 2008

Public sector banks seem
to be holding back the rate hike for the fear of loan defaults. Banks were
expected to hike their Prime Lending Rates (PLR) following the hike of cash reserve
ratio (CRR) by 25 basis points and the repo rate by 50 basis points.

Some banks such as Punjab
National Bank, IDBI Bank and Punjab & Sind Bank have increased prime
lending rates. Central Bank of India
has announced a hike, but it is yet to be brought into effect. Oriental Bank of
Commerce and Bank of India
have only raised the deposit rate for certain maturities.